Blackstone’s Link Logistics Buys LA Warehouse for $356 PSF

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Blackstone’s big last-mile logistics platform is getting bigger in Southern California.

Link Logistics bought an 82,200-square-foot industrial building on 3.1 acres at 1719 Chapin Road in Montebello, Calif., in Los Angeles County for $29.3 million in an off-market transaction. The acquisition is equal to about $356 per square foot, nearly three times the national average for industrial space and greater than the average reported price in Southern California.

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JLL announced the deal Monday and represented the buyer.

“With a strong Los Angeles industrial market, we are seeing well-positioned investors like Link Logistics look to grow their portfolio,” JLL’s Mark Vanis said in a statement. “We continue to see rising rents, decreasing vacancy and very little development, causing strong investor demand with no slowdown in sight.”

Link Logistics did not immediately return a request for comment.

The national average industrial sales price in the third quarter was $131 per square foot, according to a recent report by CommercialEdge. L.A. County posted an average of $295 per square foot.

According to JLL’s second-quarter report, rents continued to jump, rising 16 percent quarter-over-quarter, while vacancy remained near record lows at 0.7 percent across the 776 million-square-foot L.A. County market. 

Meanwhile, Link Logistics has been active as both a buyer and a seller. According to its most recent report, the firm acquired 14.5 million square feet in 64 buildings for $2.8 billion, and sold 13.5 million square feet of assets totaling approximately $1.9 billion, just in the second quarter this year.

Vanis, along with JLL’s Jon Reno, Trevor Gale and Sage Segal, represented Link Logistics in the acquisition.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.